Marketing managers recommendation is adopted

Assignment Help Financial Accounting

Reference no: EM13747237

Bismarck Corporation has a single product whose selling price is $19. At an expected sales level of $1,840,000, the company's variable expenses are $560,000 and its fixed expenses are $300,000. The marketing manager has recommended paying a sales commission of 2% of sales to salespersons instead of paying them a fixed salary of $30,000. The company expects this change will increase unit sales by 5%.

Question: What would be company's net operating income if the marketing manager's recommendation is adopted?

A) 660,000 B) 659,600 C) 676,080 D) 706,080 E) 717,840

Reference no: EM13747237

Questions Cloud

Perform to test the correctness of pricing of raw materials : Mt. Hood Furniture—PPS sampling problem) You have been assigned the task of testing the accuracy of the final inventory compilation for Mt. Hood Furniture. You may assume that you have separately observed the inventory and that you are satisfied that..

Bond premium and discount by the effective-interest method : On December 31, 2010, Bible Distributing Company issues 8%, 10-year convertible bonds with a maturity value of $700,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 9%, and the issue price of the bonds is 94..

Predetermined overhead rates to apply manufacturing overhead : The Raleigh Company is located in North Carolina and uses predetermined overhead rates to apply manufacturing overhead costs to jobs. The predetermined overhead rate is based on machine hours in Department A and direct labor costs in Department B. At..

Computing liquidity ratios : The quick ratio is quite a bit lower than the current ratio, so inventory seems to be an important component of current assets

Marketing managers recommendation is adopted : Bismarck Corporation has a single product whose selling price is $19. At an expected sales level of $1,840,000, the company's variable expenses are $560,000 and its fixed expenses are $300,000. The marketing manager has recommended paying a sales com..

Fixed manufacturing overhead costs : Fixed manufacturing overhead costs are $100,000 per year. The company has received a special order request to sell an additional 8,000 units. The special order units will not incur a $2 per unit variable shipping cost that is associated with regular ..

What role does temperature have on fertilization : When is the best time for a woman to get pregnant; right before or after menses? What role does temperature have on fertilization

Produced in order to maximize net income : XYZ Company produces two products, A and B. For the coming period, 100,000 machine hours and 225,000 direct labor hours are available. Information on the two products appears below: Calculate the number of units of Product A that should be produced i..

Write an essay covering the book the dark child : Write an Essay covering the book The Dark Child are analytical in nature and should contain two basic areas: a summary of the contents of the book.

User Account

All Pages